Pixelworks (PXLW) Strategic Divestiture Summary

Pixelworks filed definitive additional materials detailing the proposed sale of its majority-owned subsidiary, Pixelworks Shanghai, to an entity led by VeriSilicon. The Board unanimously recommends shareholders vote FOR the sale.

• Transaction Value: Equity value of ~USD 133 million (RMB 950M).
• Net Proceeds Expectation: USD 50M to USD 60M after transaction costs/taxes.
• Rationale:
  1. Monetize a significant asset in a challenging geopolitical/capital market environment.
  2. Focus resources on the core,